Developers flock to buy TDR from MMRDA; may fetch Rs 130-cr

Even as the sentiment in the real estate market continues to be low, as many as 12 developers including Oberoi Realty have bid for the 3.22 lakh sq ft (30,000 sq mt) of transfer of development rights (TDR) available in city's western suburbs put on block by the MMRDA.

The Mumbai Metropolitan Region Development Authority (MMRDA) has put on block TDR on three plots in Goregaon and Jogeshwari. This includes area of 10,574.76 sq mt of Nirlon Park and 9,970.49 sq mt of NESCO, both in Goregaon and 9,454.75 sq mt of Ajgaonkar plot in Jogeshwari.

"There has always been a demand for TDR but there was no supply for the last few years. At the same time, there was a slowdown in the real estate sector. Since we are now seeing some level optimism in the sector we decided to sell the TDR to generate funds for funding our projects," Deputy Metropolitan Commissioner (lands and estate) Anil Wankhede told PTI.

The MMRDA has received 14 bids to its e-tender. The companies that have filed tender documents are '- Saroj Landmark Realty, Kunal Realtors, Aristo Realty Developers, Bhoomi Construwell, Spade Realtors, Sapphire Land Development, Aakash Universa, Valji Sejpal & Co, Steel Plant, Streamline finance & Investment, Blue Diamond Construction Company and Oberoi Realty.

Oberoi Realty has bid for all the three plots. "The financial bids for this auction will be opened on June 25 and after the evaluation of the same winning bidders would be announced," Wankhede said.

According to market sources, the deals could fetch up to Rs 130 crore. Industry experts believe that MMRDA has tapped the market at the right time and is likely to get good realisation for the deals.

"There are developers who are looking at buying TDR to augment their project or even launch in some cases where the projects were stuck due to FSI issues. We may not see companies starting a green field project considering the number of approvals that are required for a new launch as well as the land cost," PWC Executive Director Shashank Jain said.

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